Do you know that equity contribution connotes ownership. If I have N1 share in any company, it means I am part owner of that company and this negates the true essence of leasing that recognises the lessor’s full ownership of the leased asset.
A key solution is to take advance rentals.
Advance Rentals have two implications: to reduce risks and increase yield.
For instance if you take 2 advance rentals for a 12- month lease, it means at month 10, the lease is over reducing exposure for the last two months.
Also, it is only the 2 rentals you take at the beginning that do not have element of interest, the remaining 10 rentals do and thus increase the yield.
So why not protect your portfolio, reduce your risk and increase yield by developing proficiency in lease structuring.
The Lease Pricing and Structuring Techniques programme coming up on 8th – 9th April, 2025, provides a comprehensive guide to achieve this and structuring leases no matter their complexity.
For further enquiries, kindly click here or contact 08035415478, 08023176691, info@elannigeria.org, www.elannigeria.org